A compromise on tax reform remains distant as Senate Republicans on Thursday reaffirmed their opposition to eliminating the sales tax on groceries.

Grocery tax relief is a core part of Gov. Jon Huntsman Jr.'s tax reform plan that is advancing in the House.

"We are interested in nothing short of tax reform," Huntsman said of his plan, which includes lowering the income tax rate to a flat 5 percent. "This isn't for short-term relief, it's for long-term stability."

The state is wrestling with a more than $1 billion surplus and Huntsman and tax reform leaders in the House and Senate fear that a drive to simply cut taxes could distract the Legislature from meaningful tax reform.

Movement toward agreement fractured around so-called "losers" in the income tax makeover. The House and the governor say they are tweaking their "flatter" income tax plan to protect poverty level families and retirees who would see their pensions taxed under the Huntsman plan. Senators told the governor Wednesday they are hearing from constituents across the board who fear increased taxes.

Much of the pain of those who may face small tax increases under the reform would be sapped by removing all or most of the sales tax on groceries, said Huntsman. "We have a lot more winners than losers when you overlay the tax on food [on the income tax]."

The House has packaged the grocery tax elimination with the revamped income tax in HB354, which is waiting for House action. Members already approved a separate bill that would eliminate the grocery tax (HB109.)

But Senate Republicans balk at complete removal of the grocery tax. "We would rather look in other areas," said Senate Majority Leader Pete Knudson.

"The Senate is solidly where we have been for a long time," Knudson said, adding the food tax removal "creates more problems than it solves."

Hillyard said a food tax removal or a tax cut over $100 million would severely limit money available for other needs.

Senate President John Valentine said leaders shared portions of the budget with Republican colleagues "to show just how tight they really are."

House Speaker Greg Curtis said he is unable to put more time into promoting the governor's income tax reform because, "I'm spending a lot of time on removing the sales tax on food. I'm not getting a lot of support in the Senate."

Huntsman said he is resisting Senate attempts to lower the rate below 5 percent, saying he wanted to minimize revenue losses to public education. As it is, the tax reform package would return about $180 million to taxpayers.

Utah's antiquated and patched income tax system must be revamped to prepare for a projected influx into Utah's school system of 150,000 children over the next six to eight years, the governor said. "If you leave it the way it is, it's a train wreck waiting to happen."

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Tribune reporter Matt Canham contributed to this report.